Stock trading platform TradeZero announced plans to merge with Dune Acquisition in a deal that values the combined enterprise at $566 million. The announcement confirms news reports last week that a deal was imminent.
If approved, TradeZero Global would list on the NYSE under TRAD.
The cash portion of the transaction will be funded by Dune’s trust of $172.5 million (assuming no redemptions). The balance of the consideration to TradeZero’s equity holders will consist of equity in the combined company. Existing TradeZero equity holders, including the management team, will roll 100% of their equity into the combined company and will remain the largest stockholders with approximately 70% of ownership immediately following the business combination (again, assuming no redemptions by Dune’s stockholders). Existing TradeZero equity holders have the potential to receive an earnout for additional shares of common stock if certain price targets are met.
The deal is expected to close in the first quarter of 2022.
